New developments in programmatic trading over the last few years offer in-house agencies advanced insights about audiences, allowing greater transparency into how much is being spent (to what effect) and where, as well as breakthroughs in media efficiency. Yet, most in-house agencies are missing out on these advantages by using traditional guaranteed buying methods, ad networks and/or non-transparent holding company trading desks. These approaches come at a significant and oftentimes invisible cost with in-house teams better served moving closer to the action, either executing themselves via demand-side platforms (DSPs) or using specialized, managed-services trading platforms.

Programmatic media trading is the ability to buy and sell ads machine-to-machine in real-time or on a forward basis using technology. Programmatic gives agencies advanced insights about consumers by tapping into rich audience data. In the same way that figures emerge from lots of small dots in pointillism, micro-targets are typically rolled up into a composite audience in programmatic. These insights are powerful when determining what does and doesn’t work. Often, programmatic accelerates the learning curve, allowing agencies to see how a campaign is progressing faster than traditional media buying. Programmatic also gives in-house teams more control over their data by letting them control who has access to what. In addition, the turnaround for creative is faster for teams that adopt programmatic because there is a shorter supply chain.

Agencies can buy programmatic through a managed service trading platform or directly through a DSP. Managed-service trading platforms offer agencies both technology and professional expertise. These service-oriented professionals have deep specialization in the category in which the client is trading. Using a DSP, agencies can access programmatic technology on their own without professional guidance.

With all of these advantages, in-house agencies and the clients they support clearly benefit by adopting programmatic media buying. Learn how by registering for our upcoming webinar, “Reduce Waste and Increase ROI with Programmatic Media Buying,” on Thursday, April 10th. Attendance is free for IHAF members, with a modest fee for non-members. Register today.

Bill Lederer is Founder, Chairman and CEO of MediaCrossing—the leading independent digital-media trading specialist that is reinventing programmatic buying and selling.